‘Reportedly, the Russian Federation with the use of force deprived Ukrnafta of property rights for 16 petrol stations after the occupation of Crimea in 2014. The company filed a complaint with the International Arbitration Court based on the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on the promotion and mutual protection of investments of 1998. However, Russia didn’t recognize the competence of the International Arbitration Court, which they used to prove their jurisdiction, and appealed against the decision of the International Arbitration Court,’ the company claimed.
‘The Supreme Court of Switzerland by its decision approved the legality of the International Arbitration Court to consider the dispute upon the lawsuit of Ukrnafta against Russia based on the aforementioned Agreement. Consequently, the Arbitration proceeding to be continued and the final decision of the merits of the claim is expected soon,’ reads the message.
Ukrnafta believes that the decision of the court will get them the compensation of $50 million from Russia for the expropriation of the property. In addition, the decision may affect the decisions of other courts, which consider similar cases of Ukrainian companies against Russia.
Kyrovohrad-Nafta, Krym-Petrol, Pirsan, Trade-Trust, Elefteria, VKF Satek, Rustel, Rubenor, Stemv Group, Novel-Estate, Stabil companies appealed the International Arbitration with similar lawsuits against Russia.
Earlier, arbitration proceedings started in the Permanent Court of Arbitration upon the dispute between Belbek Airport and Ihor Kolomoyskyi on the one hand, and Russia on the other. The claimants allege that the actions of the Russian Government deprived them of possibility to use the passenger terminal of Sevastopol International Airport ‘Belbek.’